Simply Understood

Investors often confuse closed-end funds with mutual funds. While there are similarities between both types of funds, there are several key differences.

Closed-End Fund Overview

Closed-end funds, like open-end (mutual funds), are investment companies that are managed by professional portfolio managers. Some key benefits of closed-end funds include the ability to generate total return through a combination of portfolio performance, dividends and distributions, and the opportunity to buy and sell shares in the market at advantageous prices.

Differences between the two types of investment companies are illustrated below.

Click on any of the key features below to learn the details that make closed-end funds important investment options.